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masya89 [10]
3 years ago
10

As the number of firms in an oligopoly increases, a. the total quantity of output produced by firms in the market gets closer to

the socially efficient quantity. b. the oligopoly has more market power and firms earn a greater profit. c. the output effect decreases. d. each seller becomes more concerned about its impact on the market price
Business
1 answer:
Aleksandr [31]3 years ago
4 0

Answer:

A is the correct answer.

Explanation:

Oligopoly is the market form in which a small number of large sellers dominate. It results in the reduction of the competition and leads to higher prices for consumers. they have their market structure. In oligopoly each firm stays aware of others,  hence their decisions influence others and vice versa. The developed economies are dominated by Oligopolies. For example, if the total market share of the American telecom companies (Verizon wireless, AT and T and T mobile ) is combined, it comes out to be more than ninety percent.

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